Cross-border bank claims fell in Q2 - BIS

By @ibtimes on

Cross-border claims by international banks fell in the second quarter of this year by 0.6 percent, or $192 billion, mainly due to fall in lending to developed economies, the Bank for International Settlements said on Sunday.

The BIS, the central bank of central banks, also warned that the emerging Asia-Pacific and eastern Europe face risks through the banking system.

High shares of cross-border claims and short-term international claims could make Asia-Pacific the emerging market region most vulnerable to sudden capital withdrawals through the banking system, the BIS said.

Meanwhile, the risk of a credit crunch triggered by a potential deleveraging by euro area banks is highest in emerging Europe.

(Reporting by Sakari Suoninen; Editing by Toby Chopra)

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